According to a new market report published by Transparency Market Research, the global on-board connectivity market was valued at US$ 12.32 Bn in 2016 and is anticipated to rise at a compound annual growth rate of 13.8% from 2018 to 2026, attaining US$ 43.20 Bn by the end of the forecast period. According to the report, North America was the largest contributor in terms of revenue to the on-board connectivity market in 2016. This is primarily due to strong technological advancement and considerable application of on-board connectivity solutions for monitoring and communication.
Rising IT spending in the aviation industry and rapid adoption of commercial transportation services driving the global on-board connectivity market
Rising IT spending in the aviation industry and rapid adoption of commercial transportation services are the major factors expected to fuel the growth of the on-board connectivity market across the globe. Continuously growing IT spending in the aviation sector is identified as a key factor bolstering the cyber security market worldwide. Rise in IT spending in aviation will lower operating expenditure, and modern technologies such as wireless connectivity, Internet of Things (IoT), automated solutions, and check-in kiosks can be installed. Apart from this, the growth of the on-board connectivity market is mainly driven by the increasing use of portable electronic devices. The growth of portable electronic devices is increasing due to the rising disposable income. The increasing use of portable devices increases the demand for connectivity everywhere, which is responsible for enhancing the demand for on-board connectivity in railways, airlines, and ships.
The growing number of air passengers worldwide is acting as a major catalyst for rising investment in the airline industry. This in turn is driving the adoption of on-board broadband connectivity. Companies are investing huge amounts to install connectivity solutions. Moreover, governments are also relaxing the allocation of spectrum for the provisioning of broadband connectivity.
On-board Connectivity Market: Scope of the Report
The global market for on-board connectivity is segmented on the basis of transportation, application, and geographic regions. Based on transportation, the market has been segmented into aviation, maritime, and railways. In 2017, the aviation segment accounted for the largest market share in terms of revenue of the global on-board connectivity market. This is due to the increasing number of air passengers in every region and increasing air journey hours which tend to increase the demand for on-board broadband connectivity.